The bill aims to enhance consumer protection regarding gift certificates by amending existing laws. It prohibits retailers from imposing expiration dates, service fees, and dormancy or inactivity charges on gift certificates. Additionally, it mandates that if a gift certificate is used for a purchase that is less than its total value, the remaining balance must be made available to the consumer in cash or as a new gift certificate, with a specific provision that if the remaining balance is under $50, it must be redeemable in cash upon request. The bill also introduces new requirements for reloadable gift certificates, allowing consumers to reload them in any dollar amount, subject to a maximum set by the issuer, and permits the combination of gift certificates with other payment methods for purchases exceeding the certificate's balance.

Furthermore, the bill clarifies the legislature's intent to protect consumers by ensuring that companies cannot restrict the full value of gift certificates and by increasing the dollar threshold for cash redemption. The effective date for these changes is set for July 1, 2024, and they will apply to gift certificates issued or reloaded with funds on or after this date. The amendments are designed to benefit consumers and resolve any ambiguities in favor of consumer rights regarding gift certificates.

Statutes affected:
Original Bill: 19.240.005, 19.240.020